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The major tax and spending bill that President Donald Trump signed the bill into law on July 4  reverses more stringent tax-reporting requirements for payment apps when it comes to telling the IRS how much small businesses are taking in via business transactions on their platforms, .

Regarding payment apps like Venmo, the new tax law reinstates a 200 transactions/US$20,000 threshold rule that was in effect prior to 2024. For the past two years, payment apps only had to report a person’s business transactions if they were more than $5,000 in 2024 and more than $2,500 this year.

Another change prompted by the new law will result in less paperwork required for businesses and upends decades of practice regarding 1099-NEC or 1099-MISC forms. Until the law passed, businesses have been required to issue 1099-NEC or 1099-MISC forms to report to the IRS the nonemployee compensation they pay on a one-off basis to independent contractors and vendors throughout the year. This can include cleaning staff, landscapers, lawyers, and accountants. The new law increases the required reporting threshold from $600 paid for services rendered to $2,000, starting after Dec. 31. The $2,000 will be adjusted for inflation annually.

As Cleanfax previously reported, the legislation  includes several key tax provisions that will directly benefit the cleaning and facility-solutions industries.